'Mining sector useless at BEE'

2010-05-26 16:38

Troye Lund

Cape Town - Mining magnate and president of the South African Mining Development Association (Samda) Bridgette Radebe has slammed the "fruitless" way black economic empowerment (BEE) has been implemented in the mining sector.

Addressing a parliamentary committee overseeing public hearings on the creation of a state-owned mining company on Wednesday, Radebe argued government has all the tools it needs to bring about transformation in the mining sector.

Only a few benefited from the country's mineral wealth not so much because the state did not have a mining company, but because government's "very good" BEE laws, charters and policies were not being implemented as they should, said Radebe.

"We are appealing to South Africa Pty Ltd to tell the truth about the way in which BEE legislation is very useful but has been fruitlessly implemented. How can we address this?" said Radebe, who is also vice chairperson of the Minerals and Mining Development Board.

Radebe said the fact that not even 15% of the mining sector was black-owned made it clear the country would never reach the mining charter's 2014 deadline of 26% black ownership.

Samda chairperson Nchakha Maloyi echoed Radebe's sentiments, saying the current BEE status quo was a "vicious cycle" that was not only failing to empower people, but leaving BEE companies heavily indebted.

Although Samda did not have any preference on whether government should form a state mining company, it stressed that a state-owned firm was not a panacea. It had to be properly run and resourced if it was to be successful and achieve the goal of transformation and economic growth.

Maloyi stressed there were examples across the globe of successful state-owned mining companies which operate side by side with private sector.

"If this exists in South Africa, there would absolutely be no problem," Maloyi said. "The important thing is not that we are blessed with mineral resources. At the end of the day, these will be depleted and we will be left with a hole in the ground. We have to find ways to use our mineral wealth to industrialise our country.

"It is completely unacceptable that a person spends a lifetime in a mine with a drill and when they get retrenched, they go back to the homelands unable to do anything but drill."

- Fin24.com

Comments

jason
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2010-05-26 16:47

Bridgette obviously wants some more gravy in the trough.
Is it not more accurate to that the richest 100,000 whiteys own the mines?
And the the richest 10,000 darkies own the 15%?

Igor
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2010-05-26 16:47

My dentist feels the same way.Spent his whole lifetime drilling, that's all he knows.

alan
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2010-05-26 16:56

It's simple, Bridgette. Let Black people with education and training prospect for minerals, raise capital for mining costs and get going with mining. That's the way everyone else has had to do it. No-one got handed it on a plate.

Real PDP
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2010-05-26 17:10

Just remind me: Is this the same Bridgitte who took over Platexco's share when they divested from SA under the guise of 'BEE'? I would wager that if she, hubbie Jeff, brother Patrice Motsepe and brother in law Cyril Ramaphosa did not hog most of the 15% rent-seeking mineral wealth (read 'BEE' deals) then the distribution of wealth amongst the poor would have been much improved. Oh, and by the way, she had quite a 'disadvantaged' upbringing, being the brat of a Tswana princess. Think she will share the gravy instead of hogging the trough? C'mon Bridge, tell us about your Zim diamond interests...

aker
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2010-05-26 17:12

Education is the first step, and unfortunately the country is failing at that - most matrics leave school ill-equiped for their futures.

bob
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2010-05-26 17:17

yes bridgitte bee has failed..but it worked for you and your brother patrice didn't it..tell you what, why don't you offer your sharholdings to local communities at the price you got in at..thought not..welcome to the ivory tower ma dalin...

jhm
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2010-05-26 17:26

Bridgette has the name AURORA SLIPPED YOU MIND

TaxPayer
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2010-05-26 17:42

Time to implement a Platinum royalty or super-tax on the $2.5 Trillion of Platinum reserves as has been done in Australia, Canada and Norway. Funds are needed for raods, infrastructure and growth and development.

ANC WIILL FALL
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2010-05-26 17:45

The ANC will wait forever for the fruits of BEE to materialize, unless the ANC start to hold its public office bearers accountable. Without accountability all the ANC rules and policies are absolutely usseless and cannot be implemented. The ANC must also remember that BEE are their own policy, thus they must not blame the country that their policy is not implemented yet, the ANC can only blame itself and the fact that they try to shift the blame is a clear indicator that they are light years away of becoming accountable. MARK THESE WORDS: NO POLICY, GOVERNMENT, ORGANIZATION ETC CAN BE OPERATED WITHOUT ACCOUNTABILITY, AND THE ANC MUST NOT EXPECT ANY RESULTS UNTIL THEY BECOME ACCOUNTABLE !!!!

Benzo
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2010-05-26 17:48

"not even 15% of the mining sector was black-owned".."the mining charter's 2014 deadline of 26% black ownership". "BEE status quo was a "vicious cycle" that was not only failing to empower people, but leaving BEE companies heavily indebted. " (1) is there an audited report that confirms the 15% or is this just one of those numbers floating around?? (2) the "BEE shareholding deal" process is fundamentally flawed as BEE partners bought the allocated shares against bank loans at a time that shares were always going up. This changed 2 years ago. (3) The loan was supposed to be financed out of dividends. Dividends also changed recently. (4) BEE share owners were not allowed to sell shares for a certain period of time. Hence they were stuck with the loan and nothing to pay for it. (5) Hence BEE share holders are heavily indebted. I have argued many times that sustainable BEE has to come from the bottom up. Most charters approach BEE from the top down. It will never work other than for a happy few (if the share prices keep rising and dividends keep flowing). The man in the street will never see a penny of this BEE model.

Panyaza Lesufi
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2010-05-26 17:48

The assets of Bridgette Radebe must be nationalized because this was stolen from the people.

Puh...lease
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2010-05-26 17:50

Uh Mandela Zuma mines incorporated... mines fail to make wages... must because the whiteys are oppressing the bee owners. How did a Mandela and a Zuma get to own the mine? raised capital against their names and guarantee of the ultimate bee status and guarantee of tender? I ask in all seriousness? Nothing will change for the black man until the black man asks questions of their leaders, granted a few will have the beemers and the house in the urbs but will have the bond and finance to go with it and the lack of historic finance knowledge to manage it... sorry chaps,

Gert
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2010-05-26 17:50

Yes Bridgette, and then the mine will be run as effieciently and effectively as the state departments, Eskom, etc. O, and don't forget, the excellent example of the Grootvlei mine, owned by no other than a Zuma and Mandela, they really are an example of how a mine should operate. Why on earth do the employees (who are mostly black) say that they will prefer a "white" owner - because then at least they will receive pay at the end of the month. You are just a hypocrate like all you fat cats at the ANC - and you don't care about the poor, so please don't try to baffle us with your bullsh*t.

Benzo
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2010-05-26 17:55

@Igor thanks, lovely comment! :-))

choice
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2010-05-26 17:55

integration of government and private company can be the solution to meet the objectives which will bring bread to every south african, it is vital to think that proper management and education can lead by example, not to feed the likes of MALEMAS with fatty DEALS that will isolate the poors.

Dawn
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2010-05-26 17:59

This Bridgette is far too "white" for her own good.

James
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2010-05-26 18:01

This is because most of the cronies that benefit think BEE stands for Black Economic Enrichment/Entitlement. If BEE headcount adds value to organisations, they will not resist complying with BEE requirements, but if it just brings a cost to the organisation as it does a lot of the time it is not surprising that businesses operating with tight margins are reluctant. The mining sector already struggles to be profitable, so adding avoidable costs makes sense.

Nic
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2010-05-26 18:01

alan for president! Exactly the way it is.

We want more
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2010-05-26 18:03

Oh Oh Oh we want more!!!!!

BadWes
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2010-05-26 18:11

Look where BEE has taken the country my dear, down the drain. But you wont know, look at your family, you in the middle of the gravy train, your fellow blacks were left at the station and you begged the driver to leave. You got everything for doing nothing my dear, you probably cant even read and send an sms like the police chief, whose secretary had to do it. And that thing on the counter in the kitchen is not the tv my dear. Wake up,put on your gloves and boots, go out in the sun and put a good 12 hour shift in underground. You dont know jackcr*p what mining is about, so take your manicured nails and go dine with Bra Bob in Zim!!

sallie
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2010-05-26 18:16

Brdgette, what has the ANC done up to now accept for spouncing? The carcasses of past prosperity have been stripped by people like you and now you still want to raise your voice? If you have any integrity, get of the gravy train girl. Sart to operate your computer, if you not able, I will will give you consultancy, at ANC prices.

Graeme
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2010-05-26 18:17

Ha ha ha ha. I love the thinly disguised arrogance of this woman and especially the blatant exposure of the facts by the posters to this article. Brilliant everyone!
Seems the clanging irony is being missed by the gravy loving princess with the wealthy Black Economically Enriched few.Love the idea of donating her shares at the price she got them at...that would be a great statement of philanthropy. Oh wait...once the money has been tasted, it will NEVER be given back. Much like the taste of chocolate, as I've been told.

Diesel Pomp
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2010-05-26 18:22

Bridgette, put your money where your mouth is. Donate 60% of your shares wich you got for saying yes in church and a few cows for labola and see what happens.We need good qualified clever people in the country's best form of income- we all win, you win even more if the share price is good. Bring the black dimonds and the money. I am sure there are a place for them. Not the shouting singing shoot the boer hooligans. Sorry lady, its not just shouting and getting. We still have some clever people amoungst us

Jason
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2010-05-26 18:28

Is this the same Bridgette who made big promises to get a young black female accountant to do all the financial professional work to raise the monies from the bank to fund her diamond mine acquisition, then uncerimonuosly dumped this young black lady accountant, who was so devasted by the greedy attitude thereafter, not even wanting to take her call, muchless to part with the shareholding that was promised Wonder if it was the same Bridgette turn state#s wind bag. Was this her way to becpme a "mining magnate"?

Love Africa
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2010-05-26 18:32

BEE makes rich blacks richer. This isn't he the average black man on the street.
What should be done is that you have your skilled white engineers that benefited from the past who should be used kept and should be training qualified black engineers. Qualifications is one thing experience is acompletely different thing

Anonymous
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2010-05-26 18:34

Bridget and Cyril and Jeff and Patrice are only four people out of plus 35 million blacks who are worse off than where they were befor 1994. They are not proxies of blacks, and so they are NOT rich on their behalf. She is correct to say BBE has failed, and so is AA. And the reason for their failure is that they are tiny little scratches on the side of a mammoth. The only solution is the total overhaul of economic relations, especially the ownership of the land and its minerals, in a way that will result in meaniful wealth creation and distribution in this country. Otherwise, we will only see the vast majority of whites continually becoming richer and "the blacks" more poor. There is a need for an overhaul of both AA and BEE polocies with the view to finding a more radical approach to economic transformation. There is no way that a white person will voluntarily abondon the loot (which they are now cashing in on) that they acquired during apartheid in order to to benefit "the blacks". Government has to urgently intervene more actively with a more radical transformation plan before we see another Zimbabwean situation here.

Billionaire
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2010-05-26 19:16

Grow up bridget and stop fooling South Africans. BEE was never ment to benefit the country and poor people. It was designed to cater for some individuals.

jeff
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2010-05-27 08:47

the problem is that the infrastructure left by the heinous apartheid regime was far too grand and elaborate-although they love them for that.Sheer inheritance ends in sheer destruction-that's where we're going. Maintenance means reducing your wealth and thats foreign to them and the ANC-that's why this country will end up barren

Benzo
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2010-05-27 09:32

@Anonymus: "She is correct to say BBE has failed, and so is AA. And the reason for their failure...." is that the processes are fundamentally flawed as I explained earlier. You say: "whites becoming richer and "the blacks" more poor". A Nobel price winning Economist predicted in the 60'ties: "the rich are becoming richer and the poor are becoming poorer". He was spot on but nothing to do with white and black. And from then on your comment falls into the political claptrap of "radical transformation", "whites do not want to let go of the loot" (do blacks voluntarily let go of their loot :-)) and "government has to intervene" which they have been doing for the last 15 years with results for all to see. Please be specific instead of this Malema type rambling, good for a soap box speech to the illiterates, threatening them with their "ancestors making them sick" if they do not believe you.

@Anonymous
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2010-05-27 14:27

Sheesh man you are living in a fantasy world. The rich white people will get richer and so will the rich black people. The BEE leaches like tanie Radebo, they get onto the gravy train, and try to fill her pockets while she is busy eating, if you are following me. It is a disease, she will lobby for shares to be given to previously disadvantaged people at reduced prices, then stab you in the back to get the shares at the low price, then sell it back to you at a FAT premium, that my friend is how people like her and comrade "Julias" work.. Wake up and smell the roses!!

The Beginner
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2010-05-27 14:28

All of us are Africans, thus all of us are black according to the race definition in the BEE laws, thus the mining sector is 100% black owned. So what's the problem? Or is Radebe prepared to supply us with legal criteria to classify a person into a specific race (eg pencil test) and a legal mandate as to who/what may classify who and a legal time limit and transfer South Africa back to 1985? Then maybe we can reintroduce Apartheid while we are at it and give whites their own Volkstaat and all the taxes they paid from 1910 to 1994.

Fair Deal
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2010-09-15 14:18

The title for this article is incorrect MINING USELESS AT BEE . This should read BEE USELESS AT MINING.

Fair Deal
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2010-09-15 14:30

@ Alan
Not quite correct. Some people did get it handed to them on a plate and stil managed to screw it up.

Post
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2010-09-20 09:12

From what i have gathered, plus 80% of mines in the country are foreign owned, so please guys lets leave the black this white that issue, it is not relevant here. All i am saying is that let us come up with ways which these natural resources we have in this country will benefit all the people of this country (black, white, rich and poor).